The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-21
THAT LAW.
The Question of the Suspen.
sion Of Section Four.
rHE 14OTR CALL FOR BONDS
.cbed misunderstanding the
War-MysteriOus RObbery--Con-
stitutiOnal-Other Notes.
That Troublesome Law.


WASHINGTON, May 2O.-J. c. Stubs,
noneraI traffic manager of the Southern
pacific. was the first witness of the day
hotors the interstate commerce COM
-,ission. and was examined by Tweed,
.,,,nseI for the railroad, in support of
Nc anpliCation to have the temporary
o-5er suspending the operation of
so@tIon lour of the law made
n1srmanent. Having referred to the
traFc over the Central Pacific, the
cSairman inquired how it happened
that witness had anything to do with
The Central Pacific. He replied that the
Central Pacific was leased line, oper
sted as far as Ogden by the Southern
PACING. Witness said that, beginning
in February. 1884, there had been q
viruIent. bitter war of rates be-
tween the Pacific roads, lasting up to
ths date of the passage of the law.
When the law was passed the Southern
Pacific had readjusted its rates, dimin-
,hiug them in many instances, but in
cressing them in no instance. The COM
peti.ion TO be met by the Pacific rail :.
Tosds was of three kinds, sailing vessels
around Cape Horn, Pacific Mail
and Canadian Pacific. To bring all of
ig!raffic down to the level of competing
rates would simply end in the bank
ruptcy of the railroad company; that
vas evident, as an average of 4 cent
Der mile would probably meet the ex-
pense of freight transportation between
san Francisco and the Missouri River.
Itpaid to carry sugar eartward at this
rate, as 1t avoided the necessity of haul
ing empty cars from the west to the
east. This rate was much lower than
that made by the Canadian Pacific, the
Pacific Mail and clipper ships, but the
real injury inflicted by the act had
scarcely had time to develope. If
it we're enforced the effect would be to
cause the road to lose more by the re-
duction of intermediate traffic than the
gross earnings amounted to on through
traffic.
E. G. Stubs, general traffic manager
of the Southern Pacific Railroad Com
pany, was the first witness to-day. The
chairman questioned the witness at
some length to learn his reason for
fearing the Canadian Pacific COMPETE
ton. He acknowledged its line was
yery much longer than the Transcon-
Enental line in the United States. How
could it make a profit? He
wished to see if the witness was
not reasoning as did the persons
who supported the long and short haul.
Stubs didn't know how much of the
rates the Pacific steamship lines re.
ceiYed or how much was left for the
Canadian Pacific. 1t was matter of
public knowledge that the Canadian
Pacific did not have business enough to
make trainlosd daily. Still they were
obliged to run trains. 1t cost no more
to haul the cars loaded than empty,
so they could take freight at
rates sufficient to pay. and for
of cars they had a 60-cent rate
between San Francisco and st. Paul.
Illustrating the effect of the clipper
ship competition, witness said: Bar
ley is carried by water from San Fran
cisco to New York and shipped back to
Chicago. The Southern Pacific charged
high local rates on produce from San
Francisco to Nevada for the purpose
Of encouraging the local agricultural
interests of Nevada, which would other
wise have been crushed. In explana-
ton of the 50-cent sugar rate from San
Francisco to the Missouri River,
Stub lbs said it was question for the
markets as well as transportation
competition, if they could have
Hawaiian raw sugar refined in San
Francisco, and distributed from that
point, instead of letting it go by way of
water to New York, it would be bene-
hclsl for the roads, for it would develop
other traffic, in which they were inter
ested.
The Communicating this purpose
10 view, as the leading object of
me building up of manufacturers at
San FranciscoP
Wltness-And railroads.
=, Continuing, he said: The roads found
they must adopt so cents rate on traw
sugar. IS
Way must2" inquired the chairman,
Witness explained that the producers
Hawaiian producers?" asked Com
missioner Shoemaker. Are they
american, or German, or English ?"
=. witness suppose the idea is to show
us Claus Spreckels; that is mistake:
ne Goes not control it. There are several
p p but can't tell you who they
., AS to California, witness did not think
oneTe was any truth in the
P@SAAhS 1ClSITSu OV the
chairman that it was brought east
81 rate less than cost in order to favor
the California wine grower.
Stub6s explained at great length the
method OF adjusting local rates as
pfacIced before the passage of the law.
ana endeavored to show how the law
disturbed that practice. He denied in
making new tariff under the law, that
tn.S company adopted the highest local
rate, as a through rate. Witness said
"a Gne distance over the Union Pacific and
central Pacific (the shortest line be-
1 D. San Francisco and the Missouri
hiyer) was 915 miles.
>, Morris wish I'D 70 krov HOY far San
FRANCISCO sugar would have To travel
over the Union Pacific to reach Omabe
AFTER some calculations, witne,s est
mated the distance at 3. 300 miles S%-
gar, he SAID, had gone over the lone
route al 50 cents a hundred sItbnnn5
Ms system had offered to take ' II "a
over shorter route. He say
no reason why the western
roads should not be oermitte5 -
make as low rate as the eastern roads
10 the Missouri River. This he thouehI
q sumclent answer TO the complaint of